Question
Zhang Wei Dumplings is a famous and successful Chinese restaurant operating in Melbourne. The owner Wang Xiu Ying provided the following information for the business
Zhang Wei Dumplings is a famous and successful Chinese restaurant operating in Melbourne. The owner Wang Xiu Ying provided the following information for the business as at 31 December 2021
Zhang Wei Dumplings: Trial Balance as at 31 December 2021
| $ |
| $ |
Cash at bank
| 15,500 | Loan ANZ Bank (due 30/4/2022) | 20,000 |
Accounts receivable
| 11,700 | Acc Depreciation Vehicles | 15,000 |
Cleaning expenses
| 3,500 | Interest revenue | 615 |
Cost of sales
| 113,650 | Discount revenue | 510 |
Vehicles
| 85,000 | Cash sales | 419,650 |
Drawings
| 12,000 | GST clearing | 5,890 |
Prepaid insurance expense
| 4,400 | Acc Depreciation Shop equipment | 21,750 |
Shop equipment
| 189,000 | Credit sales | 172,900 |
Legal fees
| 5,100 | Mortgage loan | 90,000 |
Wages
| 234,680 | Capital | 330,970 |
Computer equipment
| 62,500 | Accounts payable | 13,700 |
Sales returns
| 500 | Prepaid revenue | 5,000 |
Telephone expense
| 2,200 |
|
|
Inventory
| 18,000 |
|
|
Shop fittings
| 119,175 |
|
|
Office furniture
| 23,600 |
|
|
Equipment repair expense
| 15,000 |
|
|
Salaries
| 180,000 |
|
|
Discount expense
| 480 |
|
|
Adjustments required:-
- Inventory as per stocktake as at 31 December 2021 was $19,500
- Prepaid insurance as at 31 December 2021 was $300
- Cleaning expenses owing is $1,200
- Depreciation on the vehicle is 15% per annum
- Depreciation on computer equipment is 30% per annum
- Prepaid revenue as at 31 December 2021 was $800
- An account for equipment repair for $1,500 completed in December 2021 has not been paid and is not included in the above accounts
- It has been found that $2,000 of advertising has been incorrectly debited to the legal fees account
- A debtor owing $1,600 has to be written off
- Interest owing on mortgage loan is $425
- The business donated $1,000 worth of goods to the local school cost is $300, and has not yet been recorded
Please complete the following:-
- Record all the adjusting and correcting entries in the general journal
- Prepare all the ledger accounts, including opening balances and all the general journal entries, and balance all ledger accounts
- Prepare the Adjusted Trial Balance as at 31 December 2021
- Prepare an income statement for the year ended 31 December 2021
- Prepare a balance sheet as at 31 December 2021
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